Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                         CHAPTER 44--H.F.No. 316
           An act relating to insurance; accident and health; 
          extending the period of time during which group 
          coverage is in force for terminated employees who 
          elect this coverage; amending Minnesota Statutes 1982, 
          section 62A.17, subdivisions 2 and 5. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 62A.17, 
subdivision 2, is amended to read: 
    Subd. 2.  [RESPONSIBILITY OF EMPLOYEE.] Every eligible 
employee electing to continue coverage shall pay his former 
employer, on a monthly basis, the cost of the continued 
coverage.  If the policy, contract or health care plan is 
administered by a trust every eligible employee electing to 
continue coverage shall pay the trust the cost of continued 
coverage according to the eligibility rules established by the 
trust.  The employee shall be eligible to continue the coverage 
until he becomes re-employed and eligible for health care 
coverage under a group policy, contract or plan sponsored by the 
same or another employer, or for a period of six 12 months after 
the termination of employment, whichever is shorter. 
    Sec. 2.  Minnesota Statutes 1982, section 62A.17, 
subdivision 5, is amended to read: 
    Subd. 5.  [NOTICE OF OPTIONS.] Upon the termination of 
employment of an eligible employee, the employer shall inform 
the employee within ten days after termination of: 
    (a) his right to elect to continue the coverage; 
    (b) the amount he must pay monthly to the employer to 
retain the coverage; 
    (c) the manner in which and the office of the employer to 
which the payment to the employer must be made; and 
    (d) the time by which the payments to the employer must be 
made to retain coverage. 
    If the policy, contract or health care plan is administered 
by a trust, the terminating employer is relieved of the 
obligation imposed by clauses (a) to (d).  The trust shall 
inform the employee of the information required by clauses (a) 
to (d). 
    Notice may be in writing and sent by first class mail to 
the employee's last known address which the employee has 
provided the employer or trust.  If the employer or trust fails 
to so notify the employee who is properly enrolled in the 
program, the employee shall have the option to retain coverage 
provided he makes this election within 60 days of the date his 
employment is terminated by making the proper payment to the 
employer or trust to provide continuous coverage. 
    A notice in substantially the following form shall be 
sufficient.  As a terminated employee the law authorizes you to 
maintain your group medical insurance for a period of up to six 
12 months.  To do so you must notify your former employer within 
ten days of this notice that you intend to retain such coverage 
and must make a monthly payment of $.......... to ........... at 
.......... by the ............... of each month. 
    Approved April 19, 1983